Local Businesses Bear Costs of Affordable Care Act

Some Cut Back, Others Pay Up

POSTED: 06:25 AM PST Dec 24, 2013 UPDATED: 12:00 AM PDT Oct 01, 2013

SANTA MARIA, Calif. -

Businesses with 50 or more full-time employees are now required to provide health insurance to their workers.

Reaction has been mixed; while some businesses are cutting hours and converting their full-time employees to part-time, others are biting the bullet and getting ready to shell out tens of thousands of dollars for employee health care.

The Far Western Tavern decided to pay up because they believe cutting hours and/or employees isn't fair to their workers and won't be good for business.

"It will affect definitely the quality of service," said Benjamin Chanler-Laurin, "and I think, in the long run, it is a dangerous line to walk.

The restaurant industry is the only place where someone comes with his wallet and says,'There's my money.'"

The Far Western Tavern plans to keep all 75 employees and pay an estimated $50,000 a year for health insurance coverages.

The general manager says he'll make up the money with happy employees and happy customers.